The United Arab Emirates has said its decision to leave OPEC and OPEC+ is aimed at improving flexibility and boosting long term investment. ADNOC CEO Sultan Al Jaber clarified that this is a sovereign decision based on national interest and is not directed against any country.
Al Jaber explained that exiting OPEC will give the UAE more freedom to accelerate investments, expand production, and create more value from its energy sector. He also stressed that the UAE will continue to act as a reliable partner in global energy markets.
He highlighted that the security of key energy routes like the Strait of Hormuz remains a shared global responsibility, especially at a time of rising geopolitical tensions.
The Abu Dhabi National Oil Company (ADNOC) has announced a major investment plan worth Dh200 billion, around $55 billion, between 2026 and 2028. This marks a strong execution phase as the company focuses on securing supply, increasing production capacity, and strengthening local manufacturing.
This investment builds on ADNOC’s existing five year capital plan. The company has already been working on reducing import dependence, supporting local suppliers, and protecting projects from global supply chain disruptions.
The upcoming projects will cover both upstream and downstream segments, showing a full scale push across the energy value chain. This comes at a time when global oil and gas markets are facing volatility and tighter capital discipline.
The UAE, currently OPEC’s third largest producer, officially exited the group on 1 May. The move allows it to increase output capacity to 5 million barrels per day by 2027, removing previous production limits.
However, Russia’s Finance Minister Anton Siluanov warned that if OPEC members start increasing production without coordination, it could lead to downward pressure on global oil prices.
Meanwhile, the UAE’s exit also allows more crude to flow through the Habshan Fujairah pipeline, bypassing Hormuz. However, alternative routes in the region can handle only 3.5 to 5.5 million barrels per day compared to earlier flows of around 20 million.
OPEC+ has approved an output increase of 188,000 barrels per day for June 2026 to help stabilise the oil market. Saudi Arabia and Russia will lead the increase with 62,000 bpd each, followed by Iraq and Kuwait. The decision comes as global demand remains uncertain, with the group aiming to keep oil markets balanced.
The ongoing Hormuz crisis has severely impacted global oil supply. Around 14 million barrels per day of Middle East output has been disrupted, making it one of the biggest supply shocks in history. Global inventories are falling sharply, with drawdowns close to 11 million barrels per day.
As of early May, about 2,000 vessels remain stranded in the Gulf while the US Navy continues enforcing its blockade, further tightening global energy markets.
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